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Investor Alert: Self-Directed IRAs and the Risk of Fraud

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Brazil’s capital market remains focused on short term instruments. Most financial contracts among residents are indexed to the overnight interest rate, although there has been a gradual trend towards increasing duration in the recent years. This largely short term structure reflects long-standing fundamental factors, including a legacy of past high inflation that typically is associated with a more short–term focus for investing. Moreover, the flatness of the yield-curve––a reflection of the high level of short-term interest rates and degree of indexation of debt holders––contribute to a low secondary market turnover ratio, constraining overall market development....
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Investor Alert: Self-Directed IRAs and the Risk of Fraud

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